Maersk to buy deepwater Devon interests

By OGJ editors HOUSTON, Dec. 22 – Devon Energy Corp., in line with a recently announced divestiture plan, has agreed to sell its interests in three Lower Tertiary development projects in the Gulf of Mexico to Maersk Oil for $1.3 billion.

Devon in November said it would sell its international and Gulf of Mexico assets to focus on onshore North American activities (OGJ, Nov. 23, 2009, p. 34).

Maersk will buy Devon’s 50% working interest in the Cascade project and 25% working interests in the Jack and St. Malo projects, all in the deepwater Walker Ridge area off Louisiana.

Devon has no production or proved reserves associated with the projects. The sale will cut its 2010 capital budget for the Gulf of Mexico by $400 million.

The company estimates after-tax proceeds of the Maersk deal at $1.1 billion and of all its planned divestitures at $4.5-7.5 billion.

It said it will open data rooms on the remaining divestiture assets in the first quarter of 2010.